Black Sea Tensions Fuel Euronext Wheat Price Surge
Euronext wheat futures rose on Friday, marking a weekly gain due to heightened tensions in the Black Sea region. The conflict between Russia and Ukraine has disrupted grain shipments from both countries.
The price of December wheat on Euronext gained 1.3% to €235.75 ($273.07) per metric ton at 1553 GMT, reaching a two-week high of €237.50. This represents a 1.6% weekly increase for the contract.
September futures led the gains, climbing 2.5% to €227 per ton, supported by technical adjustments ahead of its upcoming expiry. The front-month contract also received additional support from a decline in the dollar.
The conflict has resulted in weeks of attacks on shipping in the Black Sea, reducing shipments from Russia's main grain export hub of Novorossiysk. Ukraine's military reported striking Russia's Novatek gas condensate processing complex in the Baltic port of Ust-Luga, raising questions about alternative routes for Russian grain exports.